The Hindu 29.06.2010
GVMC clinches Rs.100 crore loan
Staff Reporter
| The Government has given its nod this March, says official |
Corporation was ahead in meeting mandatory reforms like taking up GIS/GPS mapping: official
Proposals for extending Asilmetta flyover and extension of BRTS to be placed before council
VISAKHAPATNAM: Bringing a long drawn out process to fruition, the fund-starved Greater Visakhapatnam Municipal Corporation has finally received a letter of approval from the Bank of India for a Rs.100 crore loan at an interest rate of 8.25 per cent.
Hard pressed to meet its commitment of 30 per cent contribution to the Jawaharlal Nehru National Urban Renewal Mission, the GVMC had sent its proposal to borrow Rs.200 crore to the State Government early in 2009. The Government had given its nod this March after which the corporation started negotiating with financial institutions and banks.
“We have received the letter sanctioning the loan today and the Finance Department has been asked to prepare the necessary documents to enter into an MoU,” Municipal Commissioner V.N. Vishnu told reporters who met him on Monday.
Mr. Vishnu said the Government of India and the State Government had to release Rs.47 crore to the corporation for the ongoing works. The total amount would be spent on meeting the pending bills of Rs.180 crore towards JNNURM works. A plan of action will be prepared up to December to utilise the Rs.147 crore.
Technical bids
The commissioner said the technical bids for the development of 11 corporation sites in public private participation mode would be placed before the next corporation meeting for approval. After that the financial bids would be opened.
Mr. Vishnu said the corporation was ahead in meeting the mandatory reforms like taking up GIS/GPS mapping, utilising water treated by sewage treatment plants to getting the JNNURM funds.
On the land-related problems in the Bus Rapid Transit System, the Navy officials had okayed land for land offered and assured him that the approval of the Director General of Defence Estates would be obtained. The proposals for extending the Asilmetta flyover and extension of BRTS from Adavivaram to Gosala would be placed before the council.
